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Watch RBOB’s 13 day around 145.42 for guidance. Being below the 5 and 8s on the rest is not good.

Published Wednesday, April 20th, 2016

Introduction. Last night’s closes were respectable, except for the fact that RBOB, although having held its 13 day MA on the dip, was still below the 5 and 8 day MAs. It is easy with the benefit of hindsight to say that this lack of enthusiasm by RBOB should have made one wary of the closes on the rest last night and that this morning’s headline driven dump was a “given”. This is nonsense, but RBOB’s lack of enthusiasm – it alone closed below the 5 and 8s last night – may well have made many cautious. We’re back to where we were yesterday morning with a vulnerable, volatile and dangerous market. The contracts have overnight moved below the 5 and 8 day MAs but are still holding over – just in RBOB’s case – the 13 day MA. The key today lies with the action around the 5 and 8s on a rally and at the 13s on the dump. If RBOB moves and closes (m/c) below its 13 day MA around 145.42 then both it and the rest are in trouble and serious tests of support should follow.

to read the rest of the report, please click here

Posted by Robin Bieber